Unit Six: INDUSTRIALIZATION

Unit Six:INDUSTRIALIZATIONAdvanced Placement Human GeographySession 6GLOBAL INEQUALITIESThe Industrial Revolution set in motion dramatic global inequalities that exist among people and nations today.

TodayAn increasingly integrated global economy provides challenges for all countries, despite their levels of development.The problems for more developed countries generally differ from those of less developed countries.

CHALLENGES FOR MORE DEVELOPED COUNTRIESChallenges for More Developed CountriesAn important challenge for more developed regions is the protection of their markets from new competitors.This challenge is increasing since competition now occurs more frequently within regional trading blocs, or conglomerations of trade among countries within a region.

Impact of Trading BlocsThe three most important trading blocs are:North AmericaThe European UnionEast Asia

Since 1994, NAFTA countries have negotiated with other Latin American countries to extend the trading bloc to new areas of the Western Hemisphere.

North AmericaImportant Trading Bloc

Most trade barriers have been eliminated among the members of the EU.Even European nations that are not EU member-states depend heavily on trade with members.The European Union (EU)Important Trading Bloc

No formal organization of states exists in East Asia.However, Japanese companies play leading roles in the economies of the countries of that region.East AsiaImportant Trading Bloc

East AsiaThe rapid economic development of many Pacific Rim countries has created a strengthening trade bloc in East Asia in spite of tensions among countries in this region.

East AsiaImportant Trading Bloc

Transnational CorporationsTransnational corporations operate factories in countries other than the ones in which they are headquartered.Most transnational corporations are also conglomerate corporations comprised of many smaller firms that support the overall industry.Most transnational corporations are headquartered in the U.S., but other are located in Japan or Europe.Disparities within Trading BlocsEuropean Union:Industrialization is concentrated in Germany, France, and the United Kingdom.Even within those individual countries some areas are more industrialized and richer than others.

Disparities within Trading BlocsEuropean Union:Example of disparity: In France, wealth and industry are concentrated around Paris.Example of disparity: The eastern part of Germany, formerly communist, lags behind the rest of Germany.

Disparities within Trading BlocsExample: Within the NAFTA countries, Mexicos economy lags behind those of the U.S. and Canada.

DeindustrializationDeindustrializationDeindustrialization refers to the decline in employment in the manufacturing sector of the economy.Deindustrialization is commonly found in more developed countries.

DeindustrializationGenerally, the number of jobs in the service or tertiary sector increases as the percentage of jobs in industry decreases.

DeindustrializationDeindustrialization is particular evident in:The United StatesEuropeJapanThe economies of the Four Tigers

Deindustrialization: A Cause for ConcernSome suggest that deindustrialization is the result of the globalization of markets as trade between advanced economies and the developing world has grown.

Deindustrialization: A Cause for ConcernCritics believe that the fast growth of labor-intensive manufacturing industries in LDCs is displacing the jobs of workers in advanced economies.

Deindustrialization: Some OptimismSome believe that the adjustments between industrial and service sectors will work themselves through without interference.

Advances in the service sector, rather than in the manufacturing sector, are likely to encourage rising standards of living in advanced economies.

CHALLENGES FOR LESS DEVELOPED COUNTRIESIndustrial development not only lifts the value of exports, it generates money to buy other products.

Problems Encountered by LDCsDistance from marketsInadequate infrastructureCompetition with existing manufacturers in other countries

Less developed countries face the challenge of reducing the disparities between their economies and those of more developed countries.

Wealthy consumers in MDCs are generally far away, so industrializing countries have had to invest scarce resources in constructing and subsidizing transportation facilities such as:airportsdocksshipsDistance from Markets

Support services for industrial development are often lacking in LDCs.These services include:transportationcommunicationsequipment productionfewer schools and universitiesInadequate infrastructure

The control exerted by transnational corporations headquartered in MDCs, but doing business globally, is a problem for LDCs.Competition with Existing Manufacturers in Other Countries

Competition with Existing Manufacturers in Other CountriesTransnational corporations haveused low-cost labor in LDCs but havekept highly skilled jobs in the MDCs,a phenomenon known as theinternational division of labor.

The international division of labor is a process that:keeps global inequalities in placediscourages new industries from developing in LDCsprevents wealth from flowing from MDCs to LDCsCompetition with Existing Manufacturers in Other Countries

INDUSTRIALIZATION AND THE ENVIRONMENTIndustrialization and the EnvironmentAs a result of the Industrial Revolution, coal replaced wood as the leading energy source in North America and Western Europe.

Industrialization and the EnvironmentThe change from wood to coal relieved the environmental pressure of deforestation.However, it increased the likelihood that coal, and eventually petroleum and natural gas, would be depleted as natural resources.

Industrialization and the EnvironmentPopulation growth has added to the problem but energy use in MDCs is far greater than it is in LDCs.

Industrialization and the EnvironmentFossil fuels including coal, petroleum, and natural gas are residues of plants and animals that were buried millions of years ago.The world faces an energy problem because fossil fuels, especially petroleum, are rapidly being depleted.

Fossil Fuel ReservesEnergy deposits that have been discovered are called proven reserves.We do not know how many potential (undiscovered) reserves there are.Petroleum is being consumed at a more rapid rate than it is being found.

CountryUsageUnited States20,700,000 bbl/dayChina 6,534,000 bbl/dayJapan 5,578,000 bbl/dayGermany 2,650,000 bbl/dayRussia 2,500,000 bbl/dayIndia 2,450,000 bbl/dayCanada 2,294,000 bbl/daySouth Korea 2,149,000 bbl/dayBrazil 2,100,000 bbl/dayFrance 1,970,000 bbl/dayTOP CONSUMERS OF OILSource: NationMaster.comConsumption of Fossil FuelsMDCs, with about 25% of the worlds population, consume about 75% of the worlds fossil fuels.

Consumption of Fossil FuelsAs countries with large populations, such as China and India, develop industries, their share of the worlds consumption of energy is increasing.

INDUSTRIAL POLLUTIONIndustrial products have greatly added to the overall pollution of air, water, and land resources on Earth.

Global WarmingGlobal warming is the increase in earths temperature caused primarily by the burning of fossil fuels.The greenhouse effect is an anticipated warming of earths surface that could melt the polar icecaps and raise the level of the oceans enough to destroy coastal cities.

Acid RainAnother by-product of air pollution is acid rain, which forms when sulfur dioxide and nitrogen oxides are released into the atmosphere by burning fossil fuels.Pollutants eventually make their way into lakes and streams.

Acid RainResults include:corrosion of buildings and monumentsstunted growth of forestsdeath of fishloss of crops

SUSTAINABLE DEVELOPMENTSustainable DevelopmentThe basic premise of sustainable development is that people living today should not impair the ability of future generations to meet their needs.

Sustainable DevelopmentIrreparable harm to the environment would compromise the earths future.Many critics believe that the pace of economic development today is no longer sustainable, despite the fact that natural resources still abound.

Possible Solutions to Environmental ProblemsHumans may respond to environmental problems in many ways, including the following:preventiontechnological changemitigationcompensation

Some government policies have encouraged destruction of the environment (e.g. cheap gasoline).The one-child policy in China is an example of prevention of over-use of natural resources through limiting population growth.Prevention

Technological possibilities include:installing pollution-capturing filters for industrial runoffrecycling industrial wasteTechnological Change

Damage may be undone or reduced once it has occurred.Example: Chemical spills may be cleaned up.Mitigation

Political bodies may negotiate compensation for those negatively impacted by industrial wastes.Example: A company whose chemical wastes have resulted in illness and/or death among workers may be held legally responsible for damages.CompensationKey Terms and Concepts to Review for this SessionGlobal inequalitiesGlobal economyTrading blocsTrade barriersTransnational corporationsConglomerate corporationsDeindustrializationInfrastructureInternational division of laborFossil fuelsGlobal warmingGreenhouse effectAcid rainSustainable development